Kerala Urban and Rural Development Finance Corporation provides financial assistance by way of loans and advances to Urban and Rural Local Self Governments in the State for their developmental Schemes besides acting as a nodal agency for implementing various development schemes including in the social sector.

Kerala Urban Development Finance Corporation (KUDFC) was incorporated in 1970 to provide Loan Assistance to urban local bodies. From 25.05.2004, it has been extended to Grama panchayaths. Accordingly the name of the company was changed to Kerala Urban and Rural Development Finance Corporation (KURDFC).

The Company is a Non-Banking Financial Company (NBFC) and is registered with the Reserve Bank of India (RBI). The Company is categorised under Non-Deposit taking NBFC by RBI. KURDFC is a Government Company. More than 51 % of its shares are held by the Government of Kerala and the rest are held by various Local Self Government Institutions.

KURDFC implements certain Government schemes such as LIFE (Livelihood, Inclusion and Financial Empowerment) Mission. These schemes are financed through Housing and Urban Development Corporation (HUDCO). KURDFC acts as an intermediary between the Government and Local Self Government Institutions.